“Timber has outperformed stocks, bonds and commodities over the long run…it increased 18.4% last year, versus a 5.5% rise for the S&P 500”. George Nichols private research analyst
“Between 1971 and 2010, timber boasted average annual returns of over 14%. That’s enough to turn $10,000 into more than $1.5 million.” Stockinvestor.com
You can now purchase individual trees by the acre and maintain full ownership rights to the trees. Each tree you purchase is marked and GPS tagged so you can track each individual tree from purchase to market. Since we maintain the entire plantation, consisting of your trees as well as the trees of other investors, you benefit from the overall commercial value and lower maintenance costs of the entire plantation. Again, allowing you to enjoy the benefits of a large investment opportunity without the risks.
Our planting process allows for a 20-25 year final harvest (depending on the species Teak is 20 while Mahogany is 25). Since you own the trees and they increase in value each year, you can keep your investment for the full term or sell your trees at any time. Obviously the value of a fully matured tree is higher than that of a 10 year old tree but having the option of “cashing out” on your investment at any time is certainly attractive in its own regard.
First is the increase in the value of the trees based on their size. Tree sizes increase at approximately 6 % per year due to the natural biological tree growth. The trees grow quickly and as a result, they become more valuable each year that they age. As a natural commodity, your trees grow every year, and therefore their value keeps increasing. Natural tree growth means that the volume of wood that each tree produces increases by up to 6 % each year.
Second is the increase in the value and price of hardwoods. Wood prices have been rising steadily for years and that trend is expected to continue well into the future. Especially as the world’s population and resulting demand for wood continues to expand exponentially.Assuming even a conservative increase in the price of wood combined with the biological growth in the wood itself combines to add an impressive return.
Highly prized for its beauty, strength and durability the demand for hardwoods will always be rising. Your investment grows in two ways. The value of the final product grows with demand and the actual trees grow at the same time. As you can see, at Belize Hardwoods, we truly do “Grow Your Money”.
Using our knowledge and local skilled labor, our site selection and preparation is the first step in producing the best quality and highest value timber products on the market. Without the ideal site selection and preparation, the end result may not be as desirable or valuable. This is just one of the many reasons why we consistently produce the most valuable hardwoods on the market today.
According to the United Nations FAO publication ‘Forest Products Prices’, the median export/import prices of teak rose at an average rate of 9.7% per year for 18 years from 1970 to 1988 (the last year of the report), and 13.2% per year for the last four years of the report. Teak prices have clearly been rising at a rate greater than the 9% used in our projections.
Since trees only get more valuable with age they have a strong resistance to recession. Although hardwood prices rise annually, you are not forced to harvest at any particular time. Unlike other crops like cacao or coconuts that need to be harvested when ripe, you can harvest your trees based on the best particular time in the market creating an incredible advantage.
“Indeed, as an asset class, timber – a renewable resource with constant product demand – stands out as a remarkably stable investment.”
“Over the last 40 years timber investments have returned 13.3% versus an 11.6% return for the S&P 500 index over the same time frame.”
“Inflation has an inverse effect on timber prices, increasing the return on investment. Timber has historically risen 3.3% over the rate of inflation.”
“Timber returns beat stocks from 1990 through 2007… with less volatility.”
“Between 1971 and 2010, timber boasted average annual returns of over 14%. That’s enough to turn $10,000 into more than $1.5 million.”
“Timber – a renewable resource with constant product demand – stands out as a remarkably stable investment.”